Donations to aid agency GOAL slumped by more than 53% last year as the charity suffered record losses of €4.9million.

The annual report follows an internal dispute that resulted in its founder and CEO John O’Shea stepping down in August 2012.

The out-of-court settlement reached with Mr O’Shea contributed to the losses, although the report does not disclose the amount paid out to him.

However, in its 2011 annual report published last year UNICEF Ireland revealed exceptional expenditure of €206,091 which a spokeswoman confirmed was made up a €190,000 terminal payment plus PRSI to former CEO Melanie Verwoerd.

A spokesman for GOAL confirmed yesterday that the retirement settlement with Mr O’Shea is included in the 2012 GOAL annual report.

He said: “However, as the matter was resolved confidentially out of court, it is our intention to honour that agreement.

“Our auditors are satisfied that the settlement has been appropriately accounted for in the financial statements.”

In July of last year Mr O’Shea – who established the charity in 1977 - went to the High Court to prevent the board of GOAL removing him as chief executive.

After three weeks of talks, Mr O’Shea agreed to step down after a settlement was reached between the two sides.

Former Fianna Fail Government Minister Barry Andrews has succeeded Mr O’Shea as CEO of GOAL.

Explaining the drop in donations, GOAL’s directors’ report states that “there were no major appeals for funds by GOAL in 2012, and this, coupled with the lengthening recession is evident in the reduced level of voluntary and fundraising income received in 2012”.

The spokesman declined to provide fundraising figures to date for 2013, but added “it would be fair to say that the fundraising environment is still very challenging”.